NewsNityas Gems & Jewellery IPO Day 2: Subscribed 0.36x; Retail leads demand, QIB interest absentNityas Gems & Jewellery IPO Day 2: Subscribed 0.36x; Retail leads demand, QIB interest absent
- Nityas Gems & Jewellery IPO subscribed 0.36x on Day 2
- Retail investors lead demand with 0.95x subscription
- QIB category remains unsubscribed at 0.00x
- Issue closes on October 5, 2026
*this image is generated using AI for illustrative purposes only.
Nityas Gems & Jewellery IPO saw muted response on Day 2, closing with a cumulative subscription of 0.36x. Retail investors led the demand at 0.95x, while QIBs remained completely absent from the bidding process.
Subscription Status
The issue has struggled to attract significant institutional or high-net-worth interest so far. The overall subscription rate improved marginally from 0.20x on Day 1 to 0.36x on Day 2, driven primarily by retail participation. Non-Institutional Investors (bHNI and sHNI) combined for a low subscription level, indicating limited appetite from this segment.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 30-09-2026 | 0.00x | 0.20x | 0.06x | 0.52x | 0.20x |
| Day 2 | 01-10-2026 | 0.00x | 0.36x | 0.11x | 0.95x | 0.36x |
Category-wise Breakdown
Retail investors have been the sole driver of subscription volume, reaching 0.95x by the end of Day 2. In contrast, Qualified Institutional Buyers (QIB) have not placed any bids, resulting in a 0.00x subscription. The Non-Institutional Investor category remains under-subscribed, with bHNIs at 0.36x and sHNIs at 0.11x. Employee subscription stands at 0.80x, showing moderate participation from internal stakeholders.
Intra-day Timeline
The subscription data for Day 2 reflects a steady but slow accumulation of bids throughout the trading hours, with no significant spikes in demand observed.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.29x | 0.83x | 0.32x |
| 12:15 | 0.00x | 0.36x | 0.95x | 0.36x |
Offer Details
The IPO is priced between ₹70.00 and ₹75.00 per share. The minimum bid quantity is set at 200 shares. The issue size ranges from ₹14,000 crore to ₹5,00,000 crore based on the final price band selection.
- Price Band: ₹70.00 - ₹75.00
- Issue Size: ₹14,000 crore - ₹5,00,000 crore
- Min Bid Qty: 200 shares
- Open Date: 2026-09-30
- Close Date: 2026-10-05
About the Company
Nityas Gems and Jewellery Limited operates an integrated B2B and D2C model, specializing in lab-grown diamond studded gold jewellery. The company supplies to retailers across 18 states in India and exports to markets including the UAE, Australia, and Canada. Its D2C presence includes 10 retail stores under the 'Ayaani' brand following the acquisition of Ayaani Diamonds and Jewellery Private Limited in July 2025.
Financial Highlights
The company has demonstrated rapid revenue growth over the last two fiscal years, although cash flow from operations remains negative due to working capital intensity.
| Metric | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations (₹ Cr) | 202.89 | 96.85 | 53.66 |
| Profit Before Tax (₹ Cr) | 26.92 | 11.89 | 4.93 |
| Profit After Tax (₹ Cr) | 22.32 | 9.79 | 4.02 |
| Total Equity (₹ Cr) | 79.43 | 22.57 | 5.33 |
Objects of the Issue
- Funding Working Capital Requirements: To fund incremental working capital needs in Fiscal 2027, addressing upfront raw material procurement and inventory maintenance.
- General Corporate Purposes: Deployment of balance proceeds towards strategic initiatives, brand building, capital expenditure, and growth funding for subsidiaries, capped at 25% of Gross Proceeds.
Risk Factors
- Customer Concentration: Top 10 customers contributed 55.49% of revenue in Fiscal 2026, with no long-term supply contracts typically entered into.
- Supplier Concentration: Top 10 suppliers accounted for 86.16% of total purchases in Fiscal 2026, exposing the company to supply disruptions.
- Working Capital Intensity: Consistently negative operating cash flows were reported, driven by high inventory and trade receivable deployment.
- Raw Material Volatility: Gold and lab-grown diamonds constitute over 90% of raw material purchases, with no comprehensive hedging mechanism in place.
- Single Facility Risk: All manufacturing is concentrated in a single leased facility in Surat, Gujarat, with capacity utilization at 45.21% in Fiscal 2026.
How might the complete absence of QIB interest influence the final allotment ratio and potential grey market premium for Nityas Gems?
What strategic adjustments could Nityas Gems make to its valuation or offer structure if the IPO remains significantly undersubscribed through Day 3?
Given the 45% capacity utilization at a single facility, how will the raised capital specifically address scalability risks and diversify manufacturing locations?
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